20030821Order No 29317.pdf

Office of the Secretary
Service Date
August 21 , 2003
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
FALLS WATER COMPANY, INc. FOR
AUTHORITY TO INCREASE ITS RATES AND CHARGES. CASE NO. FLS-O3-
ORDER NO. 29317
On July 25 , 2003, Falls Water Company, an Idaho not-far-profit corporation and
holder of Certificate of Public Convenience and Necessity No. 236, filed an Application with the
Idaho Public Utilities Commission (Commission) requesting authority to increase its revenue
requirement by $129 564.25 (38%). As set forth in its Application, the proposed increase
reflects the increased costs of maintenance and replacement of aging infrastructure and
improving its customer service response.
If the proposed increase is approved, metered residential customers would experience
an average montWy increase of $6.39 (46%). Metered commercial customers would experience
an average montWy increase of $15.96 (79%). Unmetered residential customers would
experience a montWy increase of $4.27 (31%). Multi-family residential customers would
experience an average montWy decrease of$9.99 (-73%) per unit.
Falls Water requests the following change in water rates and charges:
Schedule No. R-residential metered service
Metered rates to increase from $10.00 far the first 20 000 gallons and $0.32984 per
thousand gallons in excess of20 000 gallons to $14.50 for the first 17 000 gallons and
$0.40 per thousand gallons in excess of 17 000.
Schedule No. R-2-residential flat rate service
Monthly charges to increase from $13.73 to $18.00.
Schedule No. R-3-residential multi-family
Existing flat rate of $13.73 per vacant or occupied unit will be changed to a metered
rate of $14.50 for the first 17 000 gallons and $0.40 per thousand gallons in excess of
000. The rate would apply to all duplexes, four-plexes, and apartment buildings
where individual units in a building are not metered separately and/or living units
cannot be sold separately.
Schedule No. C-2-metered commercial service
ORDER NO. 29317
Existing rate of $10 for the first 20 000 gallons and $0.32984 per thousand gallons in
excess of 20 000 gallons will be changed to $14.50 for the first 17 000 gallons and
$0.40 per thousand gallons in excess of 17 000.
Falls Water requests that the proposed changes in rates take effect on October 15
2003. The Company requests that its Application be processed under the Commission s Rules of
Modified Procedure, i., by written submission rather than by hearing. Reference Commission
Rules of Procedure, IDAPA 31.01.01.201-204. After reviewing the Application, the
Commission makes the following findings of fact, conclusions oflaw, and Order:
FINDINGS OF FACT
Falls Water Company has submitted a proposed schedule of rates and charges for
water service to become effective on and after October 15 2003. The Application is of sufficient
importance and complexity to require the Commission s investigation into the reasonableness of
the proposed rates and charges.
The Commission is unable to consider the Application in Case No. FLS-03-
before October 15 , 2003, because of time required to audit the Company s financial books and
inspect the Company s physical plant and because of further procedure yet to be determined.
CONCLUSIONS OF LAW
The Idaho Public Utilities Commission has jurisdiction over Falls Water Company
and its Application for an increase in rates and charges by virtue of Title 61 , Idaho Code and the
Commission s Rules of Procedure, ID AP A 31.01.01.000 et seq.
The Commission has the authority under Idaho Code ~ 61-622 to suspend the rates
and charges that are the subject of the Application for a period of thirty (30) days plus five (5)
months, or less if the Commission acts sooner, from the proposed effective date of October 15
2003.
It is necessary to suspend the rates proposed in this Application for a period of ninety
(90) days, or less if the Commission acts sooner, from the effective date of October 15 , 2003 , to
permit Commission Staff to audit the Commission s financial records and inspect the Company
physical plant, to provide sufficient time to calendar further procedure, to receive customer and
Staff comments and to consider and determine the issues presented in this Application.
ORDER NO. 29317
ORDER
IT IS THEREFORE ORDERED that the proposed schedule of rates and charges for
water service in Case No. FLS-03-01 should be, and here is, suspended for a period of ninety
(90) days from October 15, 2003, or until such earlier time as the Commission may issue an
Order accepting, rejecting or modifying the Application in this case. No change in the existing
rates and charges is permitted without prior Commission approval.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ;;"0 r--
day of August 2003.
~... J
MARSHA H. SMITH, COMMISSIONER
ATTEST:
D. Jewell
C mmission Secretary
vld/O:FLSW0301
ORDER NO. 29317